CAN WE BOOST STOCK VALUE USING INCOME-INCREASING STRATEGY? THE CASE OF INDONESIA

Rudiawarni, Felizia Arni and Sulistiawan, Dedhy (2015) CAN WE BOOST STOCK VALUE USING INCOME-INCREASING STRATEGY? THE CASE OF INDONESIA. International Journal of Applied Business and Economic Research, 13 (7). pp. 6093-6103. ISSN 09727302

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Official URL / DOI: https://serialsjournals.com/abstract/61037_6093-61...

Abstract

The main purpose of this study is to investigate the impact of accrual information to stock valuation. Managing earnings using income-increasing strategy cause stock to be overvalued.Using Indonesian data, this study selects companies that produce positive discretionary accrual. Those companies are assumed managing earnings trough incomeincreasing strategy based on Modified Jones Model (Dechow et al.,1995) and Kasznik Model (1999). Based on the findings, our conclusions are (1) income-increasing strategy negatively affects stock value, and (2) income-increasing strategy using receivable positively affects stock value. This study is expected to contribute to earnings management and overvaluation studies, especially in emerging market.

Item Type: Article
Uncontrolled Keywords: Discretionary accrual, overvaluation, and income-increasing strategy
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Accounting
Depositing User: Felizia Arni Rudiawarni 31129
Date Deposited: 27 Jan 2020 02:13
Last Modified: 27 Jan 2020 02:13
URI: http://repository.ubaya.ac.id/id/eprint/37135

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